USD/JPY hits fresh four-year highs near 115.50
- US dollar holds onto daily gains across the board.
- US yields retreat but USD/JPY remains firm near the top.
- After many economic reports, attention turns to FOMC minutes.
The USD/JPY rose to 115.47, during the American session and after the release of US economic data. A stronger US dollar continues to offer support to the pair that is rising for the third consecutive day.
The pair pulled back after hitting a fresh multi-year high, holding above 115.25. The trend and the momentum remain positive. The dollar is on its way to the highest daily close versus the yen since January 2017.
Mixed to upbeat US data
Economic data showed Initial Jobless Claims dropped to 199K, the lowest since 1969; Q3 GDP was revised from 2.2% to 2.1%; Personal Spending gained 1.3% in October and Personal Income rebounded 0.5% in October; the Core PCE Index rose 4.1% from a year ago; New Home Sales rose 0.4% in October; and the November Consumer Sentiment Index from the University of Michigan was revised from higher to 67.4. At 19:00 GMT the Federal Reserve will release the minutes from its latest meeting.
The numbers initially boosted US yields and the dollar across the board. During the last hours, yields pulled back and limited gains in USD/JPY. The 10-year yield is at 1.64%, while the 30-year fell under 2%.
Despite the retreat in US yields, the US dollar remains firm across the board. The DXY is up by 0.40% at 96.85, about to post the highest close since July 7. On Thursday, Wall Street will remain close due to Thanksgiving.
Technical levels